Benchmark analyst Mark Palmer has initiated coverage of Bitdeer Technologies Group, a prominent Bitcoin mining firm, with a buy rating and a price target of $13. The analyst note, dated March 14, highlights Bitdeer’s competitive advantage in “all-in mining costs” among publicly traded mining companies, positioning it favorably post-Bitcoin halving.
Lowest all-in mining costs and strategic advantages
Bitdeer, a subsidiary of Chinese powerhouse Bitmain, boasts one of the industry’s lowest average power costs, approximately $0.04 per kilowatt hour. This cost efficiency, strategic expansion plans, and a foray into artificial intelligence have bolstered Palmer’s confidence in Bitdeer’s growth trajectory.
Despite recent market fluctuations, Bitdeer shares are currently valued at $6.46, representing a decline of 7.6% for the week and 13.8% for the month. However, Palmer emphasizes the considerable gap between Bitdeer’s valuation and its promising prospects, attributing the current market sentiment to broader industry uncertainties ahead of the Bitcoin halving.
Bitdeer’s recent announcement regarding the successful testing of SEAL01, a cutting-edge 4-nanometer Bitcoin mining chip boasting a power efficiency of 18.1 joules per terahash, underscores the company’s commitment to technological innovation. This achievement positions Bitdeer at the forefront of efficiency in the mining sector, enhancing its competitiveness and future profitability.
Industry challenges and resilience
While some analysts express concerns about the profitability of Bitcoin mining firms post-halving, Palmer’s analysis indicates that industry players are poised to remain profitable at Bitcoin’s current price of $67,700. Despite recent declines in share prices for major mining firms like Marathon Digital and Riot Blockchain, Bitdeer’s strategic positioning and cost efficiency offer resilience in the face of market volatility.
Palmer’s bullish outlook for Bitdeer is underscored by its discounted valuation relative to its growth prospects. With a price target of $13 for 2025, Bitdeer presents an attractive investment opportunity for those seeking exposure to the burgeoning cryptocurrency mining industry.
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